Dear Ahmad Battal

For the purposes of this discussion, we will assume that the output for the Kao Residual Cointegration Test in EViews is as follows:

Kao Residual Cointegration Test

ADF Statistic: -3.456789

Probability: 0.0003

Residual variance: 0.001234

HAC variance: 0.001567

ADF Statistic: -3.456789

This is the test statistic. A more negative value indicates stronger evidence against the null hypothesis of no cointegration.

The probability value is 0.0003. The p-value associated with the ADF statistic is less than 0.05, indicating that the null hypothesis is rejected and that cointegration among the variables is confirmed.

Hopefully, this will help:)

Kind regards,

Florian

Hi @Ahmad Battal,

Johansen Cointegration : 1. Pedroni Cointegration Test 2. Kao Cointegration Test 3. Fisher Cointegration Test

In Eviews, clarification on a tutorial by Komal: in https://www.youtube.com/watch?v=5Gcdb-_y5oE

Or in Stata software with its codes :

https://www.stata.com/manuals/xtxtcointtest.pdf

Warm regards,

Abdi-Basid ADAN

To apply the Kao Residual Cointegration Test in EViews:

To apply the Kao Residual Cointegration Test in EViews:

EViews will display the test results, indicating whether cointegration is present.